Legacy Reserves Inc. announced that On the Effective Date, Legacy entered into a credit agreement (the “Credit Agreement”) among Legacy, as borrower, the lenders from time to time party thereto, and Wells Fargo Bank, National Association, as the administrative agent, the collateral agent and the issuing bank. Pursuant to the Credit Agreement, the lenders party thereto agreed to provide a new reserves-based revolving credit facility (the “Revolving Credit Facility”) with initial aggregate commitments in the amount of $1.5 billion, subject to a borrowing base. The initial borrowing base under the Credit Agreement is $460 million. The stated maturity date under the Credit Agreement is December 11, 2023. The loans under the Revolving Credit Facility shall bear interest based on borrowing base utilization percentage at a rate per annum equal to the alternate base rate plus a margin ranging from 1.25% to 2.25% for alternate base rate loans or the adjusted LIBO rate plus a margin ranging from 2.25% to 3.25% for LIBOR loans. Unused commitments under the Credit Agreement will accrue a commitment fee at a rate per annum of 0.50%. All interest and commitment fees are payable quarterly in arrears. Legacy may elect, at its option, to prepay any loan under the Revolving Credit Facility without premium or penalty (except with respect to any break funding payments which may be payable pursuant to the Credit Agreement). Legacy may be required to make mandatory prepayments of the loans under the Revolving Credit Facility in connection with certain borrowing base deficiencies. Additionally, if Legacy has outstanding borrowings, undrawn letters of credit and reimbursement obligations in respect of letters of credit issued under the Revolving Credit Facility in excess of the aggregate revolving commitments, Legacy may be required to make mandatory prepayments. Legacy's obligations under the Revolving Credit Facility are guaranteed by all of Legacy's material domestic subsidiaries (the “Guarantors”) and secured by substantially all of the assets of Legacy and the Guarantors, including at least 95% of the net present value of Legacy's and the Guarantors' proved oil and gas properties, in each case subject to certain exceptions. The Credit Agreement contains customary representations and warranties and also customary affirmative and negative covenants, in each case for credit facilities of this nature, including restrictions on the incurrence of indebtedness, liens, fundamental changes, asset sales, investments, dividends, redemptions, repayments of other debt and hedge agreements. Additionally, Legacy is required as of the last day of any fiscal quarter, commencing with the fiscal quarter ending March 31, 2020, to maintain (a) a maximum total net leverage ratio of 3.50 to 1.00 and (b) a minimum current ratio of 1.00 to 1.00. Additionally, the Credit Agreement contains customary events of default and remedies for credit facilities of this nature, including non-payment, breaches of representations and warranties, non-compliance with covenants or other agreements, bankruptcy, ERISA, failure of the loan documents to be in full force and effect, judgments and change of control.

The company also announced that Paul T. Horne, Kyle D. Vann, William R. Granberry, G. Larry Lawrence and Douglas W. York resigned from the Board. None of the resignations resulted from any disagreement with Legacy regarding any matter related to Legacy's operations, policies, or practices. n accordance with the Plan and the Stockholders Agreement, as of the Effective Date, Legacy's Board consists of seven members: James Daniel Westcott, Kyle M. Hammond, Robert Horn, Robert W. Baker, Valerie Kritsberg, David Coppe and Richard F. Betz. On the Effective Date, Ms. Kritsberg resigned from the Board and the Board appointed Gary Gould to the Board. Ms. Kritsberg's resignation did not result from any disagreement with Legacy regarding any matter related to Legacy's operations, policies or practices.